Amazon is set to face a U.S. trial on Monday over allegations that it used deceptive practices to enroll millions of customers in its Prime subscription service. The Federal Trade Commission (FTC) filed a complaint in June 2023, accusing the e‑commerce giant of employing “dark patterns” to trick consumers into signing up for the $139‑per‑year service during checkout.
The case centers on two main allegations. First, Amazon is accused of enrolling customers without clear consent through a confusing checkout process. According to court documents, the checkout forced shoppers to navigate an interface where declining Prime required finding small, inconspicuous links, while signing up was facilitated by prominent buttons. Crucial information about Prime’s price and automatic renewal was often hidden or disclosed only in fine print. Second, the FTC alleges that Amazon created a deliberately complex cancellation system, internally nicknamed “Iliad.” Canceling a membership required navigating a “labyrinthine” four‑page, six‑click, fifteen‑option process.
The FTC claims Amazon was aware of widespread “non‑consensual enrollment” in Prime but resisted changes that would reduce these unwanted sign‑ups because they negatively affected the company’s revenue. The agency is seeking penalties, monetary relief, and permanent injunctions that would require Amazon to change its practices. The lawsuit relies on the Restore Online Shoppers’ Confidence Act (ROSCA), which prohibits charging consumers for internet services without clear disclosure of terms, obtaining express consent, and providing simple cancellation mechanisms.
Amazon’s defense strategy will focus on arguing that ROSCA and other regulations do not specifically prohibit the practices in question. The jury trial, expected to last about four weeks, will largely rely on internal Amazon communications and documents, as well as testimony from Amazon executives and expert witnesses. If the FTC prevails, Amazon could face substantial financial penalties and be required to overhaul its subscription practices under court supervision. The outcome will have significant implications for the company’s business model, as Prime subscribers spend considerably more on the platform than non‑members.
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